NEW YORK, July 23, 2009 (GLOBE NEWSWIRE) -- Napoli Bern Ripka, LLP filed a multi-million dollar FINRA arbitration against AXA Advisors, LLC on behalf of ten similar situated investors. The statement of claim alleges among other things, material misrepresentations and omissions, breach of fiduciary duty, and creation of an unsuitable investment strategy.
Generally, a misrepresentation occurs when a broker intentionally or unintentionally misrepresents the risks of an investment. An omission occurs when a broker intentionally or unintentionally fails to disclose information that the broker knew or should have known that the client would rely on regarding the risks of the investment. Here, the claimants collectively allege that AXA omitted material information regarding their broker's investment licenses and omitted material information about the fees charged in each of their accounts.
Claimants further contend that because their broker was not adequately licensed to sell bonds, he recommended risky and speculative bond funds that were unsuitable to fit the claimants' conservative investment objectives.
There is a stark difference between individual bonds and bond funds. Individual bonds pay a fixed stream of income and they return your principal on a specific date if held to maturity. Bond Funds invest in many securities with different coupon payments. The income received from the underlying investments is distributed monthly to shareholders. The distribution may vary from month to month and your principal is more susceptible to loss.
Most of the claimants were interested in safe investments with capital protection but instead were concentrated in bond funds that did not fit their particular investment needs.
Napoli Bern Ripka, LLP has one of the strongest and brightest securities arbitration departments in the country. The firm welcomes any investors who have lost money as a result of broker misrepresentations. If you believe you have a case, please contact Napoli Bern Ripka, LLP at 212-267-3700.